Holdings

Abakan management has also decided to invest in MesoCoat’s parent company, Powdermet, Inc., by buying out one of their shareholders for 41% of the company. Investing in Powdermet allowed Abakan to increase its indirect ownership of MesoCoat by 20.1%. Since then, Abakan exchanged 16.9% of its Powdermet interest to gain additional ownership of MesoCoat; Abakan now owns 24.1% of Powdermet. But more importantly, several of the technologies that have been under development at Powdermet have tremendous market potential in their own right. Abakan believes that they can add business insight to the turn the firm around from more of a R&D facility to a successful commercial company. Also making Powdermet an attractive investment is the fact that this company has won six SBIR awards since they invested in it and has a backlog of grant funded projects that allow it to self-fund their current R&D projects so it doesn’t require much cash from Abakan at this time, allowing us to focus on raising funds for MesoCoat’s expansion phase.

Powdermet is a nationally recognized advanced materials research and development organization. Formed in 1996, this 20-person firm led by Andrew Sherman pioneered the development of hierarchically structured metals and has played important roles in the commercialization of important nanotechnology developments over the last decade. Powdermet has been partnering with defense agencies for the last fifteen years building some breakthrough material technologies needed by the military at Powdermet’s Nanomaterials Research and Manufacturing Center. This firm pioneered the development of hierarchically structured metals and ceramics, and has played important roles in the commercialization of important nanotechnology developments over the last decade. Powdermet has primarily financed their development and manufacturing operations over the last 14 years by winning over 80 government sponsored grants as well as manufacturing and selling nano-engineered products to multinational companies that white label Powdermet manufactured powders. They also have excelled at generating additional revenue by commercializing their developed technologies.

The firm is currently transitioning from an engineered nano-powder producer to a value-added materials solutions developer, focused on "clean, green, sustainable material solutions." The company’s continuing mission is to develop, mature, and transition advanced materials solutions from concept to commercial success. Powdermet is currently developing high strength, low weight, thermally insulating syntactic metal composites, and nano engineered materials; several of which are currently under testing with several divisions of the U.S. military.

Today, Powdermet has four primary technology platforms under development including:

SComP™

A family of syntactic metal and ceramic composites known for their light weight properties, and ability to absorb more energy than any other known material. SComP™ can provide 30-50% weight savings over cast aluminum and 10% weight savings over magnesium without magnesium’s corrosion and wear limitations. The Company’s S-ComP™ energy absorbing, ultra-lightweight syntactic composites are the next breakthrough technology the company is maturing for commercial transition as a potentially leading solution for structural insulation, crash and ballistic energy management, and transportation/ spacecraft weight reduction and increased fuel economy. Each of these markets is currently being reviewed further for market acceptance and product positioning.

MComP™

A family of hierarchically structured metal and metal matrix nanocomposites with high strength and ductility, leading to a higher strength to weight ratio over traditional metals. Working with the US Army, Powdermet has demonstrated aluminum micro/nanocomposites with strengths approaching and exceeding steel, without reliance on costly rare earth metals like beryllium, aluminum, and magnesium used in competing ultra-high strength alloys. The company is currently contracted to demonstrate that the proprietary MComP™ production process is scalable to larger production, while being able to maintain the breakthrough properties achieved at the laboratory scale.

ENComP™

Hierarchically structured nanocomposites for energy applications; including advanced materials for hydrogen production and storage, high surface area structures for fuel cells, hydrogen production membranes, advanced filtration, and reactive materials solutions for improved active defense systems used for protecting US military personnel.

SynFoam™

A Family of structurally insulating syntactic ceramic composites combining strength, high temperature functionality, and low thermal conductivity into one multifunctional material.

In addition to the above four market solutions, Abakan recognizes the potential of Powdermet lies in its innovation capability, and management’s ability to meet the materials challenges of the future. This innovation capability is greatly enhanced by one of the firm’s other core assets, their extensive materials science knowledge, network and collaborations.

Powdermet’s material science knowledge coupled with the contacts and knowledge base of these institutions; enables Powdermet’s management to keep on top of all the latest innovations in materials sciences, and make sure they advance their product R&D; to be in line with planned market needs. Abakan looks forward to participating in this firm’s financing and market development in the same capacity as it has for MesoCoat.